IT286_Unit1_Assignment.docx IT- 286 Unit 1 Assignment Purdue Global University– IT286 Network Security Concepts In order to explain SLE x ARO = ALE, we must first discuss what the acronyms mean and what they
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IT286_Unit1_Assignment.docx IT- 286 Unit 1 Assignment Purdue Global University– IT286 Network Security Concepts In order to explain SLE x ARO = ALE, we must first discuss what the acronyms mean and what they represent. SLE represents how much you expect to lose at any given time. In order to get your SLE, it is comprised of two components which are asset value and exposure factor. Asset value is represented by AV and Exposure factor is EF. So, with the following formula, you can find SLE: SLE= AV x EF, in which also can be read (AV x EF) ARO= ALE. Next, we have ALO which represents the annualized rate of occurrence, which means what is the likelihood of this happening? You can base this off historical data of an event happening. This now pushes our formula to SLE (AV x EF) x ARO = ALE. Now, ALE represents the annual loss expectancy, which is how much one thinks or expects they will lose over the course of a year. An example of this would be if I had a Software company and my SLE is $5000 ($2500 x 2) and my ARO is (52weeks x .10), my ALE would be $26,000. 2. Risk Reduction When it comes to risks and managing them, there are 5 main ways to reduce the overall risk. The first way is risk limitations, which is the most common. This is a simple way a company can limit their exposure by taking different actions. This is where a company realizes what the total risk is and acknowledges the risk acceptance. For example, in the Army, we are a 24/7 organization, however our systems still need t. . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. .. . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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